Alcatel Reinforces Its Leadership in End-to-End Internet Solutions with Enhanced 'DANA' Product.

ANTWERP--(BUSINESS WIRE)--April 20, 1998--

"Interoperability demonstration of Alcatel DANA (Data Application Network Adapter) broadband remote access node with PPP/ATM (point-to-point protocol over asynchronous transfer mode) customer premise equipment from multiple vendors proves DANA the best way for carriers to deploy ADSL (asymmetric digital subscriber line) services in a rapid, scaleable and cost-effective manner"

A network demonstration at the recent CeBIT show with multiple customer premise equipment vendors, including Efficient Networks and Escalate Networks, showed the Alcatel DANA to be the first broadband RAN (remote access node) to terminate PPP/ATM in a way that supports scaleable deployment of a PPP/ATM RAN architecture, involving large volumes of PPP sessions.

Carriers are incorporating more PPP/ATM into their networks to deliver "quality of service" guarantees in association with DSL services. This development reinforces Alcatel's leadership in end-to-end Internet architecture, by making the DANA broadband RAN as easy to use as the narrowband services currently used by service providers.

Michael Stewart, CEO of Escalate Networks, said, "Alcatel's global reach will make PPP/ATM solutions the natural choice for those carriers that intend to offer ADSL as a core to new services where Quality of Service is guaranteed. Carriers are discovering that low cost ATM Network Interface Cards are as easy to install as Ethernet and offer the best technical solution where mass deployment of DSL services are envisaged. The Escalate focus on network management enables carriers to deploy these ADSL services globally and manage down to the Network Interface Card in the PC."

Martin De Prycker, vice-president and general manager, Internet Access & ADSL Alcatel, commented, "For a service provider, DANA and its PPP/ATM feature unleashes the potential of Broadband RAN from day one deployment. For Alcatel, it illustrates our dedication to making ubiquitous PPP/ATM a reality in the near future. Building on this success, we will continue to carry out related interoperability exercises, towards our goal of end-to-end interoperability."

"Efficient Networks is pleased to showcase its PPP over ATM interoperating with Alcatel's 1000 ADSL and DANA digital subscriber line (DSL) system," said Greg Langdon, vice president of marketing at Efficient Networks, Inc. "Our SpeedStream 3010 ATM25 adapter card provides cost-effective support for PPP over ATM and enables seamless ATM connectivity directly to users' personal computers. In keeping with our initiative to deliver easy-to-install customer premises equipment, Efficient will continue to work closely with companies such as Alcatel and with DSL network service providers to provide interoperable PPP over ATM solutions."

The Alcatel DANA product is part of the Alcatel Remote Access product family, including all network elements to deliver a broadband end-to-end architecture for Internet and other services. The Alcatel DANA enables the rapid, fully-scalable deployment of high-speed Internet DSL services to large and small businesses and residential subscribers. DANA supports the same end-user "look and feel" as conventional Narrowband Internet connectivity on both protocols, the ATM RFC 1483 and the PPP/ATM protocol. For service providers, DANA supports legacy interfaces and protocols to realize AAA (Authentication, Authorization & Accounting) functionality and to forward the payload traffic. A consistent operations model is built up with this network element, lowering the cost of operations. It enables service providers the opportunity to offer value-added services such as VPNs and Dynamic Service Selection and to manage bandwidth such as to increase DSL revenues.

About Escalate Networks

Escalate Networks designs and manufactures ATM/ADSL solutions for the CPE which include, NICs, ATM Switches, ADSL/ATM switches and ADSL modems, or NT's. Visit our Web Site at www.escalate.net.

About Efficient Networks

Efficient Networks, Inc. is a premier supplier of ATM over ADSL customer premises equipment (CPE) to the worldwide data and telecommunications markets. The company's SpeedStream product line includes a broad range of internal and external modems all designed for simple installation. As a recognized leader in ATM technology, Efficient Networks is a member of the ATM Forum and the ADSL Forum. With headquarters in Dallas, Texas, Efficient Networks also has offices in Amsterdam, Chicago, Walnut Creek, Calif., and Arlington, Va. For more information, see Efficient's World Wide Web home page at www.efficient.com.

About Alcatel

The Telecom sector of Alcatel Alsthom, designs, manufactures, and markets complete telecommunications systems. Activities include fixed switching networks, transmission systems, access systems, mobile communications infrastructure, business networking, submarine cable networks, as well as radio communications, space, and defense systems. With operations in over 130 countries, Alcatel is a leading-edge supplier in the majority of its business. In 1997, the Telecom segment of Alcatel Alsthom registered total sales of FF 83 billion (more than US $13B). For more information, visit Alcatel via the Web at www.alcatel.com. -0-

Contacts:

Alcatel Alsthom Investor Relations (Paris):

Anne Guimard, [phone]

E-mail: [e-mail]

or

Charlotte Laurent-Ottomane, [phone]

E-mail: [e-mail]

Fax (for both): [phone]

or

U.K. media contact:

Barrington Lloyd International, [phone]

E-mail: [e-mail]

or

Alcatel

Karin Degroote, [phone]

E-mail: [e-mail]

or

Efficient Networks, Inc.

Lori Hicks, 972/991-3884

Fax: [phone]

E-mail: [e-mail]

or

Escalate Networks

Ernest Woodruff, [phone] =20

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E-mail: [e-mail]

CONTACT: Alcatel

Mark Burnworth, 972/996-5986

Internet: [e-mail]